Let’s talk about something tricky—lending money to family or friends. In Singapore, most people value family relationships and close friendships. If they ask for financial help, it’s almost unkind or even rude to say no, especially if you suggest going to a money lender Singapore instead.
Before you reach for your wallet, think about this first. Lending money to someone you care about is no small matter, and it’s important to approach it with both heart and head in the right place.
Here are a few things to think about before you say “yes.”
Know how much you can afford to lend
In Singapore, the cost of living isn’t exactly low, and most of us have financial responsibilities like housing loans, CPF contributions, and saving for retirement or kids’ education. Before you lend your relative or friend some money, first look at how it will affect your budget. Remember, you shouldn’t compromise your own financial security to help someone else—even if it’s family.
If the answer is no, it’s better to be upfront about it rather than risk your own well-being. A simple, “I wish I could help, but I’m not in the position to lend right now” is a polite and honest response.
Define the purpose clearly
It’s not rude to ask why they need the money. If it’s for a real emergency, like a sudden hospitalization, then they have a good reason to borrow money from you. But if it’s just to buy an expensive thing that they can’t wait for, it’s better to say “no.”
Set expectations beforehand
Setting clear expectations may be awkward, but it’s necessary. Writing down details such as repayment terms and deadlines ensures there’s no misunderstanding later, especially if the amount they will borrow from you is large.
If you’re uncomfortable discussing it face-to-face, send a polite text like:
“Hey, let’s work out how and when you’ll return the money so it’s clear for both of us. Hope that’s okay?”
A little formality may be the key to keeping your relationship on good terms.
Be aware of the risks of lending to friends and family
Let’s face it: there’s always a risk that the money won’t come back. The worse part is your relationship with that friend or family member can turn sour. In the worst cases, there may be no way to fix the relationship into what it was before you lent the money.
It’s also worth noting that in Singaporean culture, where “face” and reputation matter a lot, unpaid loans can be embarrassing – not just for you but for the person borrowing, too.
With that, ask yourself if you can maintain the relationship if ever the money is left unpaid. If you cannot say “yes” to that, better reconsider lending the money.
Consider other means
If you can’t lend money or don’t feel comfortable doing so, there are other ways to help. You could find other resources for them to get the money they need, like financial assistance programs from the government. If it’s for medical bills, for example, you can lead them to programs like CHAS or Medifund.
Conclusion
Lending money to friends or family members is a very personal decision to make. It’s not just about dollars and cents—it’s about trust, relationships, and the potential impact on both parties. While we all want to be there for our loved ones, it’s equally important to make sure that generosity doesn’t lead to regret.
So, before you lend, think carefully, talk openly, and make sure you’re truly comfortable with your decision.